Ethics in Energy Act of 2025

The Ethics in Energy Act of 2025 would require the Federal Energy Regulatory Commission (FERC) to stop covered utilities from recovering certain expenses—defined as “covered expenses”—that are tied to political influence activities or to affiliated entities. The bill broadly defines covered expenses to include payments to external vendors or consultants, centralized service companies or other corporate affiliates, and even salaries for employees performing political influence activities. Covered utilities include large electric utilities, major natural gas companies, and centralized service companies that meet specific annual sales or throughput thresholds. FERC would must issue regulations within 18 months to prohibit ratepayer recovery of these expenses and to adjust accounting rules so such costs are presumptively non-recoverable. The bill also requires annual, highly detailed reporting by covered utilities about these expenses and imposes penalties for noncompliance, with funds split between ratepayer rebates and enhanced enforcement capabilities at the Commission. In short, the bill aims to increase transparency and prevent utilities from charging ratepayers for political activities or related expenses, while strengthening FERC oversight and penalties for violations.